Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an inter-governmental body whose purpose is the development and promotion of
policies, both at national and international levels, to combat money laundering and terrorist financing. The Task Force
is therefore a "policy-making body" which works to generate the necessary political will to bring about national
legislative and regulatory reforms in these areas.

Since its creation the FATF has spearheaded the effort to adopt and implement measures designed to counter the use of the
financial system by criminals. It established a series of Recommendations in 1990, revised in 1996 and in 2003 to ensure
that they remain up to date and relevant to the evolving threat of money laundering, that set out the basic framework for
anti-money laundering efforts and are intended to be of universal application.

The FATF monitors members’ progress in implementing necessary measures, reviews money laundering and terrorist financing
techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In
performing these activities, the FATF collaborates with other international bodies involved in combating money laundering and
the financing of terrorism. For more on Mutual Evaluations see
monitoring implementation of the FATF Recommendations.

The Financial Action Task Force has revised the Recommendations after more than two years of efforts by member
countries. The Recommendations are used by more than 180 governments to combat money laundering and terrorist
financing. The revisions, made with inputs from governments, the private sector, and civil society, provide
authorities with a stronger framework to act against criminals and address new threats to the international
financial system. please see the
FATF Recommendations February 2012.

The FATF does not have a tightly defined constitution or an unlimited life span. The Task Force periodically
reviews its mission. The FATF has been in existence since 1989.
The current mandate
of the FATF (for 2004-2012) was subject to a mid-term review and was approved and revised at a Ministerial meeting in April 2008. For more information on the
FATF’s role, please see the FATF’s standards.

History of the FATF

In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was
established by the G-7 Summit that was held in Paris in 1989. Recognising the threat posed to the banking system and to
financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force
from the G-7 member States, the European Commission and eight other countries.

The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action
which had already been taken at a national or international level, and setting out the measures that still needed to be taken
to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a
set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money
laundering.

In 2001, the development of standards in the fight against terrorist financing was added to the mission of the
FATF. In October 2001 the FATF issued the Eight Special Recommendations to deal with the issue of terrorist
financing. The continued evolution of money laundering techniques led the FATF to revise the FATF standards
comprehensively in June 2003. In October 2004 the FATF published a Ninth Special Recommendations, further
strengthening the agreed international standards for combating money laundering and terrorist
financing – the 40+9 Recommendations.

During 1991 and 1992, the FATF expanded its membership from the original 16 to 28 members. In 2000 the FATF
expanded to 31 members, and has since expanded to its current 36 members. For more
see FATF members and observers.